EVA Advantage for Small Enterprises
Mehul Doshi Doshi, CxO / Board, India
True EVA adds a lot of value.
The area which you may need to add for small company is modify EVA with additional parameters along with its output.
The logic if applicable in your case need to be assessed by you:
Small companies generally have lesser segregation of duties and more overlapping portfolio. Hence the value add is more driven by core team or key stakeholders.
For small companies it is essential to provide them EVA for organization and enable strategic stakeholders EVA compared to other teams. In this manner the management can get perspective of appropriate strategy required for its needs. Worst case understanding and best case understanding. Hope the above helps and best of luck on your assignment.